A survey by IVC Online, of the Zinook group, shows that venture capital financing rounds in Israel totaled $2.4 billion in the first three quarters of 2000.
The data show that even if the fourth quarter proves to be weaker, the overall sum raised by high tech companies in 2000 will be higher than $3.2 billion, which is three times raised by companies in all of 1999. It should be noted that the companies included in the survey are those with at least one Israeli venture capital fund participating in their capital raising rounds.
Investments in Israeli high tech companies by local funds are expected to total over $1.1 billion, one third of all the capital raising by these companies. This compares with $435 million in 1999. Initial Zinook estimates show that funds raised more than $2 billion this year, compared with $1.6 billion in 1999.
They also show that Israeli funds raised an overall $6.5 billion in the past ten years, of which $3 billion are available for new and follow-up investments. According to IVC data, 46% of the funds’ third quarter investments were follow-up investments in companies already invested in, and 54% went to initial investments.
Zinook president and CEO Zeev Holtzman anticipates a general slowdown in 2001. He said that it is reasonable to assume that some leading funds will start further capital raising towards mid-year, or the end of 2001.
Published by Israel's Business Arena on 19 December, 2000